Summary

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	5	+= Overview =
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7		-Overview
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10	10	Pioneer Credit Limited is an Australian based financial services provider, specializing in acquiring and servicing unsecured retail debt portfolios, the sale of non-core portfolios, brokering and introducing credit products. The Company's product under the Connect brand is a mortgage offering, through Pioneer Broking, to enable existing Pioneer Credit customers and new customers access to consolidation loans and refinance opportunities for their home or other real estate assets. Its subsidiaries include Pioneer Credit Solutions Pty Limited, Sphere Legal Pty Limited, Pioneer Credit (Philippines) Pty Limited, Pioneer Credit Connect Pty Limited, Pioneer Credit Broking Services Pty Limited and Switchmyloan Pty Limited.
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13	13	The company's primary Its business involves in the acquisition and servicing of unsecured retail debt portfolios comprised of personal loans and credit card accounts that are generally more than 180 days overdue and at a discount to their face value. The company was founded by Keith R. John in 1998 and is headquartered in Perth, Australia.
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	11	+= Busienss model =
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16		-Busienss model
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19	19	Pioneer’s primary activity is the servicing of customer accounts.  Its business model is characterised by two key activities:-
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21	21	Investment in unsecured retail debt portfolios; and
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25	25	Pioneer’s objective is to work closely with these customers who – for a range of reasons – have found themselves in financial difficulty. In the great majority of cases this has come about through a significant life event such as loss of job, serious health issues, marriage breakdown or domestic violence.
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28	28	A key goal at Pioneer, is to see their customers achieve financial recovery and evolve as a ‘new consumer’.
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31	31	Due to its unique approach, across the entire portfolio, its overall return is evaluated and managed on a return multiple to the acquisition investment. The company's financial performance is evaluated on a total return basis.
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	25	+= Operations =
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36		-Operations
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39	39	Since the commencement of its business, the Company has been focussed on building a differentiated servicing platform staffed with exceptional people, trying to achieve great outcomes for its customers. This approach has never wavered.
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42	42	Over the past 10 years the Company has introduced a range of programmes into its business to increase the focus on customer outcomes, including its Pioneer Principles and the measurement of NPS or Net Promoter Score. And during the past few years Pioneer Credit has noticed a change in community expectations where there is now greater emphasis and demand on all businesses, and particularly those in the financial services industry, to have a customer-first focus.
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45	45	This change in expectations, which was enforced in the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, has been good for Pioneer.
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48	48	Pioneer Credit has been engaged with more vendors through FY19 than ever before. The company acquired customer accounts from several different originators and Pioneer Credit has had significant enquiry and engagement with potential new partners, which the company expect will provide further opportunities in FY20 and beyond. More so, the company acquired these customer accounts at the lowest price point in 8 years.
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	35	+== Customer acquisition ==
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51		-Customer accusation
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54	54	Pioneer is currently in partnership with three of the ‘big four’ banks, regional banks and leading consumer leasing providers.  Pioneer builds relationships with partners that have similar standards for risk assessment, retail credit origination, customer service and brand values to their own. The customer segments acquired by Pioneer are all similar in nature, predominantly credit cards, personal loans and high quality consumer leases. This allows the Customer Service Team at Pioneer to become specialists in working with this type of customer.  They all had good credit history when originated, have experienced a ‘life event’ and are generally motivated and eager to meet their obligations and get their financial life back on track.
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57	57	The majority of retail portfolios sold in Australia and New Zealand are under forward flow agreements, where a purchaser agrees to purchase and a vendor agrees to sell a proportion of its portfolio, meeting agreed characteristics for an agreed term (typically of 12-24 months).
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59	59	At the time of purchase, the price paid is generally determined by a tender process in which participants perform their own due diligence and determine the price they are willing to pay.
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62	62	Existing in-house knowledge of the portfolio under offer or similar equivalents is utilised along with a consideration of macro and micro economic factors assessed using the experience of senior management.
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65	65	The sale of debt portfolios is highly regulated and Pioneer invests in best practice compliance processes, quality customer service and utilises data analytics processes to deepen the understanding of portfolio characteristics.  This investment as well as the depth of vendor relationships developed over time have positioned Pioneer with access to the vendor panels of all of the ‘big four’ banks.
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	47	+== Types of portfolio ==
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68		-Types of portfolio
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71	71	The majority of Pioneer’s purchases are unsecured personal loan and credit card portfolios.  Pioneer also purchases consumer leases, consumer rental agreements and transactional accounts.
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73	73	Pioneer does not purchase lower quality and quick liquidating telecommunications, utilities or pay day lending accounts.
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76	76	Pioneer’s customers are regarded as Tier 1.  That is, they were not credit impaired when originated.
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	55	+== Payment Arrangements ==
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79		-Payment Arrangements
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81	81	Pioneer enters two types of Payment Arrangements with its customers:
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83	83	Fixed Schedule Payment Arrangements – whereby agreed periodic payments are made until the account is closed with interest at an agreed rate; and
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87	87	In both cases, Payment Arrangements are tailored to the customer’s situation and managed by a Specialist Customer Service Team.
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	65	+= Culture and people =
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92		-Culture and people
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95	95	Pioneer’s culture is the foundation of its success. Not just in the way the company clearly, honestly and openly communicate with its stakeholders, but also with its vendors who know what Pioneer Credit is doing as a business, how the company perform and what they can expect from it.
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98	98	The Pioneer Principles form the core of what the company expect from every one of its team. They are enacted in every interaction and represent the behaviours and qualities used to recruit, recognise and retain its team.
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101	101	The Net Promoter Score (NPS) system is used to measure its customer engagement and alignment to the Pioneer Principles. NPS is measured on a customer’s willingness to recommend Pioneer to a friend or family member. This survey is sent to customers at three key stages of their journey, including:-
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104	104	~1. At the completion of their first conversation with Pioneer;
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106	106	2. When a customer first enters into a payment arrangement; and / or
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108	108	3. When a customer has finalised their account with Pioneer.
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111	111	This is its Pioneer Promise to customers and is used to improve its service offering to its customers and to recognise its team members. With a positive score of +14 the company consistently demonstrate that its customers genuinely value their experience with Pioneer.
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	81	+== Pioneer Principle ==
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	84	+[[[[image:https://corporate.pioneercredit.com.au/wp-content/uploads/2018/04/Leadership-principles-for-Annual-report-v12.jpg]]>>url:https://corporate.pioneercredit.com.au/wp-content/uploads/2018/04/Leadership-principles-for-Annual-report-v12.jpg]]
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118		-Pioneer Principle
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120		-[[https:~~/~~/corporate.pioneercredit.com.au/wp-content/uploads/2018/04/Leadership-principles-for-Annual-report-v12.jpg>>url:https://corporate.pioneercredit.com.au/wp-content/uploads/2018/04/Leadership-principles-for-Annual-report-v12.jpg]]
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